OTT Monitor 2014-Q3

The Dutch OTT Market Monitor provides a comprehensive overview of the
Dutch over-the-top services market. The OTT market is by nature a global
market, dominated by US providers such as Google, Facebook and Netflix.
The report describes this international OTT market, including a
classification and an extensive analysis of the current business model
trends. Our classification distinguishes between communication (incl.
social networking), entertainment (incl. gaming) and other web services.

We have identified nine trends, including the role of advertising and
the 'sharing' economy.
The analysis of the Dutch market focuses on
app usage for the mobile segment and on cord cutting issues for the
fixed-line segment. Social networking, Facebook and Netflix are among
the most popular apps.

There is a special focus on the traditional
operator point of view, who in one way stands to lose and in another
benefits from the rise of the OTT sector. After all, traditional
operator managed services are at risk, but the broadband and device
markets are major beneficiaries.

The voice market still holds up against
the likes of Skype and Viber, but the SMS market is in strong decline
from competition of WhatsApp and other (chat) apps. At the same time, the broadband market has developed into the most important source of income for most traditional operators.

The
report helps to understand possible operator responses to the OTT
opportunities and threats, as well as a number of regulatory
implications. Cancelling pay TV is not yet a visible trend on the Dutch
market, but readiness to do so is building. Operators respond primarily
by cutting costs, to match decreasing revenues, but there appear to be
plenty of opportunities for expansion. 'TV everywhere' is just one of
them.